A credit union serving Oklahoma’s medical marijuana industry decided to stop doing so, a move that affects nine accounts and deals a setback for the state’s MMJ companies.
Tulsa-based Encentus Federal Credit Union told the Tulsa World that serving the MMJ industry was too costly and the regulatory burden too great.
The credit union informed the customers by letter, saying it would close the accounts by Oct. 31.
Encentus board chair Jana Hallman said that the guidelines required by the Financial Crimes Enforcement Network — or FinCEN — are burdensome and essentially require bank staff to become auditors.
The U.S. House last week passed the SAFE Banking Act, which would ease the path for financial institutions to serve cannabis-related firms without fear of federal punishment, but the measure likely faces a tougher hurdle in the U.S. Senate.
Abaca, a financial technology company based in Arkansas, has partnered with a state-chartered bank to offer financial services to MMJ businesses in Oklahoma.
It’s unclear if any other financial institutions are offering services to the MMJ industry in the state.
For more on this story, click here.